PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,000 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $300 and $200, respectively.

Instructions

A. Identify the above costs as variable, fixed, or mixed.

B. Calculate the expected costs when production is 5,000 units.

E5-9

The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $60 a night. Operating costs are as follows.

Salaries $5,900 per month FIXED COST

Utilities $1,100 per month FIXED COST

Depreciation $1,000 per month FIXED COST

Maintenance $100 per month FIXED COST

Maid service $14 per room VARIABLE

Other costs $28 per room VARIABLE

Instructions: Determine the inn's break-even point in

(a) number of rented rooms per month and

(b) dollars.

E5-13

Billings Company has the following information available for September 2017.

Unit selling price of video game consoles $ 400

Unit variable costs $ 280

Total fixed costs $54,000

Units sold 600

Instructions

A. Compute the unit contribution margin.

B. Prepare a CVP income statement that shows both total and per unit amounts.

C. Compute Billings' break-even point in units.

D. Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.

E6-2

In the month of June, Jose Hebert's Beauty Salon gave 4,000 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $16,800 and variable costs were 75% of sales.

Instructions

A. Determine the contribution margin in dollars, per unit and as a ratio.

B. Using the contribution margin technique, compute the break-even point in dollars and in units.

C. Compute the margin of safety in dollars and as a ratio.

E6-7

PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change–related services represent 70% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 30% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $15,600,000 (that is, $78,000 per service outlet).

Instructions

A. Calculate the dollar amount of each type of service that the company must provide in order

B. The company has a desired net income of $52,000 per service outlet. What is the dollar amount of each type of service that must be performed by each service outlet to meet its target net income per outlet?

The company has 2,000 hours of labor available to build inventory in anticipation of the company's peak season. Management is trying to decide which product should be produced. The direct labor hourly rate is $10.

Instructions

A. Determine the number of direct labor hours per unit.

B. Determine the contribution margin per direct labor hour.

C. Determine which product should be produced and the total contribution margin for that product.

ACC 560 Week 11 Quiz 8 (Chapter 14)
Question 1
Horizontal analysis evaluates a series of financial statement data over a period of time
Question 2
Ale Corporation had net income of $240,000 and paid dividends to common stockholders of $40,000 in 20..

This Tutorial was purchased 4 times & rated
No rating by student like you.

ACC 560 Week 10 Quiz (Chapter 13)
Question 1
Indicate where the event purchase of land and a building with a mortgage would appear, if at all, on the indirect statement of cash flows.
Question 2
Generally, the most important category on the statement of cash ..

ACC 560 Week 6 Quiz 4 (Chapters 7 and 8)
Question 1
In March 2016, Wheels ‘N Spokes repairs a bicycle that takes two hours to repair and uses parts of $240. The bill for this repair would be
Question 2
In cost-plus pricing, the target selling price..

ACC 560 Week 1 Homework Chapter 1 (E1-5, E1-9, E1-10 and E1-2A)
E1-5
E1-5 Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows.
1. Property taxes on the factory building.
2. Production superintenden..

"The Cost of Complexity" Please respond to the following:
· Read the article titled, “The Missing Metrics: Managing the Cost of Complexity” l Next, in a globalized economy with many business complexities, speculate the major ways that these complexities might impact a business..

"Labor and Materials Costs" Please respond to the following:
Use the Internet and/or Strayer Learning Resource Center to research a U.S.-based company that manufactures technology products. Recommend one (1) approach that your selected company can take in order to lower the dir..

"Transfer Pricing" Please respond to the following:
· Read the article titled, “What Manufacturers Need to Know about Transfer Pricing”. Next, assess the major potential problems that a multinational firm could encounter when using negotiated transfer ..

“Cash Flow Statements and Cash Hoards" Please respond to the following:
Apple Inc. and Microsoft Corp. are identified as companies that have accumulated substantial sums of cash. Microsoft and Apple increased dividend payouts and acquired treasury stock to return some of the excess c..

"Investments in Global Markets" Please respond to the following:
Use the Internet and/or Strayer Learning Resource Center to research capital investments in global markets. Next, analyze the main factors that an organization should consider in determining the required rate of return ..

This Tutorial was purchased 4 times & rated
No rating by student like you.

Week 6 details: Variance Analysis and Balanced Scorecards" Please respond to the following:
Use the Internet and/or Strayer Learning Resource Center to research a company that has implemented a balanced scorecard system for evaluating performance. Suggest at least two (2) varian..

Use the Internet and/or Strayer Learning Resource Center to research folling forecasts as an alternative to budgets. Next, take a position at to whether or not a flexible budget approach dilutes the value of a budget process in the organization. Provide a rationale for your position
..